Bursa Malaysia - Sidelined Ahead of GE13

The local stock market clawed back into positive territory from early decline on Tuesday, in line with most regional markets as sentiment was boosted by better housing data in US and expectations  that  the  Federal  Open  Market  Committee would  reaffirm  their  monetary stimulus  measures.  The  KLCI  gained  9.68  points  to  close  at  1,717.65,  off  an  early  low  of
1,702.83 and high of 1,718.44, but losers beat gainers 443 to 254 on improved trade totaling 811.6mn shares worth RM2.26bn.

Resistance at 1,718 & 1,740
Investor  sentiment  should  remain  tepid  ahead  of  a  holiday-shortened  trading  week,  and with  most  market  players  choosing  to  remain  sidelined  pending  the  outcome  of  the  GE13
this weekend. Immediate resistance remains at last  Friday’s intra-day record high of 1,718, while  a  breakout  would  target  1,740,  123.6%  Fibonacci  Projection  (FP)  level.  Meanwhile, immediate support stays at the previous 1,699 record high of Jan 2013, with better support coming from the 30-day moving average now at 1,682.Stronger retracement supports are at 1,658, the 23.6% Fibonacci Retracement (FR) level, and 1,633, the 38.2%FR.

SELL MMHE & Petronas Chemicals
Bearish  technical  momentum  on  MMHE  could  force  share  price  lower  towards  the  low  of
29/03/13  (RM3.75),  while  a  breakdown  would  grease  downside  towards  the  low  of 28/10/10  (RM3.69),  before  buyers  return  for  bargain hunting.  Meanwhile,  any  further upside  on  Petronas  Chemical  towards  the  upper  Bollinger  band  (RM6.56)  would  be  good opportunity  to  sell  ahead  of  eventual  correction  towards  the  30-day  moving  average (RM6.41),with  stronger  supports  coming  at  the  lower Bollinger  band  (RM6.30)  and  the 38.2%FR (RM6.09).

By TA Securities

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